The funding increase was due to a 1 percent rise in asset value combined
with a substantial 5 percent decrease in liabilities, resulting from an
increase in high-quality corporate yields.

“Domestic stocks started the year positively in February and March, but
were negative performers. Equity asset classes lost ground for the
quarter, while global bonds performed well. Emerging markets were the
only equity sector that contributed positive performance,” said David
Palmerino, vice president with Segal Marco Advisors. “The Fed also
again increased the target range for the Federal Funds Rate to 1.5 to
1.75 percent, in a move that was largely telegraphed and had no dramatic
impact on bond prices. These aspects contributed to the 1 percent gain
in asset value.”

“As plan sponsors reconsider their strategies and tactics for 2018, this
might be an appropriate time to raise the issue of examining the plan’s
evolving risk-mitigation strategy,” National Retirement Practice Leader Stewart
Lawrence added.

To speak with one of our consultants about the model plan, and how it
may inform decision-making for employers that have a pension plan,
please contact me.

Segal Marco Advisors (www.segalmarco.com),
a member of The
Segal Group, provides innovative, client-driven consulting advice,
outsourcing solutions, proxy voting and corporate governance. Clients
include joint boards of trustees administering benefit plans under the
Taft-Hartley Act, state and local governments, corporations, non-profit
organizations, endowments and foundations. The firm works with financial
services firms through Rogerscasey, a Division of Segal Advisors, and
with Canadian clients through Segal Rogerscasey Canada.

Sibson Consulting (www.sibson.com),
another member of The Segal Group, provides strategic human resources
solutions to corporate and non-profit employers and professional service
firms. Sibson's services include benefits, compensation, human capital
management and change management consulting.